Eastern Cape highest production growth area

According to figures by Milk SA, 1 429 million litres of milk was supplied to processors in the first half of 2015. This is 137 million litres (10,6%) more than during the same period last year. Over the same period, dairy imports increased substantially while exports decreased slightly, resulting in a change in the net export situation of 89 million litres. Higher production was responsible for 60% of the increase in the total supply and higher imports accounted for 40%.

Milk production increased at a rapid pace in the coastal areas and according to the MPO’s calculations half of the total increase in production can be attributed to Eastern Cape farmers, while Western Cape farmers accounted for 38% and Kwazulu-Natal farmers for 13% of total production growth. Production decreased in the inland provinces.

Chances of production growth continuing at these rates are slim. Higher grain and lower product prices, scarcity and higher prices for roughage, as well as a possible El Niño effect, ill curb production. In addition, production quotas implemented by various processors will encourage producers to limit production.